Newtopia Inc. — Investor Presentation 2021

Jun 24, 2021

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Corporate Overview Presentation June 2021

Forward Looking Information

Certain statements in this presentation are forward-looking information or forward-looking statements. Such information and statements, referred to herein as “forward-looking statements” are made as of the date of this presentation or as of the date of the effective date of information described in this presentation, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (generally, forward-looking statements can be identified by use of words such as “outlook”, “expects”, “intend”, “forecasts”, “anticipates”, “plans”, “projects”, “estimates”, “envisages, “assumes”, “needs”, “strategy”, “goals”, “objectives”, or variations thereof, or stating that certain actions, events or results “may”, “can”, “could”, “would”, “might”, or “will” be taken, occur or be achieved, or the negative of any of these terms or similar expressions, and other similar terminology) are not statements of historical fact and may be forward-looking statements. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect, including, but not limited to: the ability of Newtopia to execute on its business plan; Newtopia’s business performances; Newtopia’s business prospects and opportunities; and completion of listing on a listing on a stock exchange. Newtopia considers these assumptions to be reasonable in the circumstances, given the time periods for such outlook. However, there can be no assurance that any one or more of the industry, market, operational or financial targets as set out herein will be achieved. Inherent in the forward-looking statements are known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements including, but not limited to, those risk factors set forth in this presentation. Prospective investors and/or current investors should not place undue reliance on these forward-looking statements as a prediction of actual results, as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, estimates, assumptions, and intentions expressed in such forward-looking statements. The forward-looking statements reflects Newtopia’s current expectations and beliefs regarding future events and operating performance of Newtopia and is based on information currently available to Newtopia. Actual results may differ materially from the forward-looking statements contained herein. These risks include, but are not limited to, risks relating to the offering of special warrants, risks related to changes in the regulatory framework applicable to Newtopia’s business; risks relating to dependence on key personal; access to capital; the risk of Newtopia’s business; the risk of a change in investment return; the potential for a conflict of interest; and tax related risks. The foregoing list of factors that may affect future results is not exhaustive. When relying on forward looking statements, Investors should carefully consider the foregoing factors and other uncertainties and potential events. The forward‐looking statements contained herein is current as of the date of this presentation. Except as required by law Newtopia does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forwardlooking statement, nor does it intend, or assume any obligation, to update or revise these forward-looking statements to reflect new events or circumstances. Any and all forward-looking statement included in this presentation is expressly qualified by this cautionary statement, and except as otherwise indicated, is made as of the date of this presentation.

Future Oriented Financial Information

To the extent any forward-looking information in this presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Future oriented-financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out above under the heading “ Forward Looking Statements”. Newtopia’s actual financial position and results of operations may differ materially from management’s current expectations and, as a result, Newtopia’s revenue and expenses may differ materially from the revenue and expenses profiles provided in this presentation. Such information is presented for illustrative purposes only and may not be an indication of the Company’s actual financial position or results of operations.

Certain Other Matters

By accepting delivery of a copy of this presentation, each such person agrees that he, she or it will not transmit, reproduce or otherwise make this presentation, or any information contained in it, available to any other person, other than those persons, if any, retained by such person to advise such person with respect to an investment in the securities of Newtopia, without the prior written consent of Newtopia. In consideration for the time and effort expended by Newtopia and its representatives to prepare this presentation, these obligations shall survive indefinitely, whether or not a prospective investor and/or current investor acquires any securities of Newtopia.

All dollar figures contained in this presentation are in CAD, unless otherwise stated.

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Meet Newtopia – Transforming Healthcare

And Disrupting the Broken US Sick Care System.

Who We Are

CDC Accredited Diabetes Prevention Program

Tech-enabled habit change provider focused on disease prevention and reducing the cost of care for health insurers.

What We Do

Prevent , reverse , and slow the progression of chronic disease while enriching mental health, resilience and overall human performance.

Randomized Control Trial Published in JOEM

Fortune 500 Customers

Patented Experience

How We Do It

Focus on whole person care providing virtual one-on-one coaching, digital tools, connected devices and actionable data science to deliver sustainable clinical and financial outcomes .

Strong Topline Growth & Balance Sheet

TSXV Listed: NEWU: May 4, 2020

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Our Broken Sick Care System

Health systems don’t adequately support primary prevention , leaving insurers to fill this void.

Chronic disease is prevalent and expensive.

If you prevent these behaviors, you'll see a dramatic decrease in chronic disease.[2]

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90%
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of America’s $3.8T in annual health care costs are for people with chronic and mental health conditions.[1]

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Many chronic diseases are caused by:

• Poor nutrition

• Lack of physical activity

• Tobacco use

80% 40% heart disease, stroke, cancer and type 2 diabetes

• Excessive alcohol use

• “Health and Economic Costs of Chronic Diseases,” Centers for Disease Control.

• “Widespread Misunderstandings About Chronic Disease and the Reality,” World Health Organization.

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Risk Factors that Contribute to Chronic Conditions

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Waist circumference Untimely death Kidney disease
1 as likely
or BMI 5x to develop
Elevated blood
type 2 diabetes
Vision disability Liver damage
2
glucose / A1C
as likely
Elevated
Weakness
2x to develop
3 Heart problems
blood pressure or paralysis
heart disease
4 [Elevated triglycerides] Coma Deteriorating
as likely mental health
3x to have a
Increased societal
5 [Low HDL cholesterol] stroke Decreased and household
productivity
challenges
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Source: International Diabetes Foundation, Highlight Health, CMS.gov, CDC.com.

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Costs of Chronic Disease Risk to Health Insurers

COVID-19 80% of the US population has INDIRECT at least one COSTS/ risk factor MENTAL HEALTH DIRECT COST/ PHYSICAL HEALTH Healthy 1-2 Risk Factors 3+ Risk Factors $3,400/year $4,400/year $5,400/year Average medical spend per member Average medical spend per member Average medical spend per member

Diabetes, Heart Disease, Stroke, NASH $15,000-20,000/year Average medical spend per member

~80% OF THE POPULATION

~20% OF THE POPULATION

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Source: Aetna Innovation Lab.

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Massive & Growing Addressable Market

80% of the North American population has at least 1 risk factor = 320M people

320M X $1600 per person over 3 years = $512B+ Opportunity

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At Risk Identification

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Newtopia Online
Risk Screener
Employer Sponsored
Biometric Screening Invitation to
Invitation to
Invitation to
Employer Administered
Health Risk Assessment
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How Does Newtopia Work?

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Personal
Profile
Genetic
Invitation to
Engagement
Personality-Matched
Inspirator
Supportive Online
Social Community
Personalized
Nutrition, Exercise,
and Well-Being Plan
Engaging Gaming
Achieve on
Wearable the Go App
Bio-Sensors
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Our Inspirators

Habit change designers, behavior change agents.

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Brianne

Bachelor of Social Sciences

“My passion is truly helping people find their version of optimal health . I enjoy working with participants and providing them with the support to make tiny habit changes that make difference, build their confidence , and continue to improve multiple aspects of their lives.”

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Martin

BA Kinesiology Honors Specialization

“Focusing on my health and nutrition has been life changing. This personal experience is what drives me to inspire my participants to achieve not only a healthier body but a healthy mind . Working with participants of all ages and from different walks of life inspires me.”

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Ashley

Certified Nutritional Consultant

“Health and fitness has always given my life clarity and direction. I help others find their own strengths, achieve their goals, and know they have the ability to manage their health . It’s inspiring to see how participants are enjoying their lives with more strength, health, and energy .”

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Our Patented, Scalable Virtual Care Platform

Transformative Habit Change Platform

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TECHNOLOGY AND BEHAVIORAL
USER EXPERIENCE ECONOMICS AND DATA ANALYTICS
DESIGN PSYCHOLOGY
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AI SMART
DEEP LEARNING AUTOMATION
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CURRENT: 1 Inspirator for every 200 participants

FUTURE: 1 Inspirator for every 350+ participants

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Aetna Randomized Controlled Trial

Randomized Controlled Study (RCT) shows material savings for customers.

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10%
10%
US$1,464 in savings
Annual reduction in medical costs
7.5% Newtopia continues to
2X in-year ROI
replicate and improve on
4.3% RCT results in our
5% commercial book of business
2.5%
0%
YEAR 1 YEAR 2
Newtopia Randomized Control Trial Typical Prevention Program Outcomes
Average Body Weight Reduction (%)
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Source Year 1: “Reducing Metabolic Syndrome Risk Using a Personalized Wellness Program.” Journal of Occupational and Environmental Medicine, December 2015. Source Year 2: Newtopia and Aetna Inc.; Typical Prevention Program Outcomes – based on anecdotal feedback from customers and industry peers.

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2020 Behavioral Economics Trial, Impact & Outcomes

Newtopia’s habit change platform was offered in two markets of employees leveraging unique behavioral economics and provides insight into how Newtopia can reduce risk exposure to chronic disease.

Of the eligible population, 71% enrolled . This is significantly higher than the 25% enrolled in Newtopia’s RCT and current book of business.[*]

7,753 people[**] total enrolled in the trial. This is >1.8X our goal of 4,200 participants. Participants lost a total of 35,833 pounds in 12 months.

Engagement

84%

of population engaged at 12 months (engagement target from RCT was 50%)

Participant Satisfaction 8.3/10 Overall satisfaction score (avg score is 8.2 across book of business)

Weight Loss[]* 33% Achieved >5% weight loss (24% achieved >4.3% weight loss in RCT)

Importantly, not only do these results meet or exceed our RCT and book of business, the 12-month period occurred during the COVID-19 pandemic when so many struggled to develop and maintain healthy habits.

• Published results from the Randomized Control Trial in the Journal of Occupational and Environmental Medicine (2015).

** Includes employees, spouses and domestic partners.

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*** Among continuously engaged for each of the 12 months. 4% weight loss on average across all participants.

Recurring Revenue Model: Subscription Based

Participant Welcome Kit Monthly Subscription One-time fee Per engaged participant [1] C$230/kit C$65/month

Outcome Milestone Target: 5% body weight reduction

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C$200/success

[2] Average Recurring Revenue per Participant (3 yrs.+) = C$1,600 with potential for growth over time

1. ($230/kit) + ($7Average monthly fees for Wholesale/Direct over 3 year estimated participant lifetime.

1. 7 year 1 price x 70% engagement x 12 months + $59 year 2,3 price x 45% engagement x 24 months) + ($200 x 50% achievement of success fee) = $1,600.

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Marquee US Employer Partners

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opportunity to fill the glass 5X on existing contracts alone 20%

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Debut Canadian Public Health Insurer

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522,000
TOTAL POPULATION
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In 2020, 34% of the population in Newfoundland and Labrador had Diabetes (type 1, type 2 diagnosed and type 2 undiagnosed) and prediabetes combined.

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1. “Diabetes in Newfoundland and Labrador,” Diabetes Canada, February 2020.
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Valuable Industry Data

GENETIC DATA

LIFESTYLE DATA

BEHAVIORAL DATA

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PRODUCT ENHANCEMENT AND R&D

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Highly Experienced, Driven Management Team

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Jeff Ruby

Lara Dodo

Bill Van Wyck

Edmond Lem

Founder & Chief Executive Officer

Chief Growth & Operations Officer

Chief Technology Officer & Head of Product

Chief Financial Officer (Interim)

Co-founded Cleveland Clinic Canada, Life Screening Centres, and Genetic Diagnostics Inc.

CEO of TimePlay and Co-Founder of Bedrock Affect

Founder, CEO and CIO Zillion, President Redroller, Inc.

Controller Spectra7 Microsystems, Inc. (TSX: SEV.V)*

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Peter Seider

Michele Dodds

Mark Jackson

Rikki Bennie

Chief Information, Privacy, & Security Officer

SVP Client & Experience

SVP Commercial

SVP Marketing

Aviva Canada and Aviva North America, and Information Security Executive at Nedbank

Nanthealth, Preventure, Human Care Systems, ComPsych and CVS Caremark

Previously with Nanthealth, Teladoc, Cigna and Aetna

Cineplex and Employee #1 at Newtopia

*Assumed Interim CFO Role on June 25, 2021.

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Annual Revenue and Gross Margin

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Annual Revenue & Gross Profit Margin
12000 11,416 55%
10000 45%
8000 35%
6,109
6000 25%
9 months
4000 15%
3,074
2,619
2000 1,504 5%
735
0 -5%
2016 2017 2018 2019 2020 2021
Gross Margin
Revenue in C$ 000's
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*2021 – Q1 Only

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Revenue in C$1,000’s

Gross Profit Margin (%)

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Participant Engagement: Steady Growth

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Average Quarterly Engagement
35,000
30,250
29,875
30,000
25,000
20,000
15,000 13,750
9 months
10,000 8,450
4,633
5,000
1,664
-
2016 2017 2018 2019 2020 2021
2021 – Q1 Only
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Average # Engaged Participants Per Quarter (rounded to nearest 100)

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Key Growth Drivers

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Increase Enrollment Improve Product Density Expand Client Base
Increase Member Enrollment Penetrate New Markets and Cross Sell Increase Penetration by Continuing
Rate with Existing ClientsExisting Clients Solutions to Existing Clients to Win New Clients
SELF-INSURED EMPLOYERS
140M
LIVES
PRIVATE INSURERS
PREVENT REVERSE / SLOW 100M
LIVES
PUBLIC/GOV INSURERS
Habit Change
and Resiliency
2017 2018 2019 2020 100M 38M
LIVES (US) X LIVES (CAN)
Registered Eligible Popluation
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Increase Enrollment

Increase Member Enrollment Rate with Existing ClientsExisting Clients

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The Future of Health Care is Prevention

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Marquee
Proven Insurer
Collection of
Financial and Partners
Valuable
Clinical
Industry Data
Easily Outcomes Highly
Scalable Experienced
Virtual Care
Management
Platform Team
Recurring
Massive and
Revenue Model
Growing
that Provides
It’s all about accountability , and for me that
Addressable
works! My annual wellness exam and Predictability
bloodwork are exponentially better, and I
have so much more energy! These things
combined have improved my quality of life
to the point that my attitude is more
positive, my stress levels have come down
(personally and professionally) and I enjoy
being more active with my family.
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Medicare Advantage Study

Santa Barbara Actuaries Research Report: Newtopia Over-65 Population Savings Estimate.

Report Highlights:

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5.5% $1,700 Anticipated average Cost savings per body weight reduction MA member

$10.8 million Estimated one-year savings for plan with 100,000 members

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Source: “Newtopia Over-65 Population Savings Estimate,” Santa Barbara Actuaries, November 2020.

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Quarterly Revenue & Gross Margin

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Quarterly Revenue & Gross Profit Margin
4,000 100%
3,500
80%
3,000
2,500
60%
52%
49% 51% 50%
39%
2,000 45%
43%
38%
35% 40%
1,500
37%
1,000 21% 19%
20%
10%
500
892 885 704 593 1,761 1,609 1,202 1,538 3,863 2,687 2,389 2,477 2,619
- 0%
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21
C$ in 000's
Gross Profit Margin (%)
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Revenue in C$ 000’s

Gross Profit Margin %

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Monthly Engagements Per Quarter

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Quarterly Engagement
35,000
30,400 30,500 30,250
29,400 29,200
30,000
25,000
20,000
14,800 15,000
15,000
12,900
12,300
10,000
10,000 9,000
7,500 7,300
5,000
-
Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21
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Monthly Engagements per quarter (rounded to nearest 100)

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(as of 3/31/21) Capitalization Table

Current Cap Table

# O/S W.A. Strike (MM) (C$ per share)

Ownership

Common Shares

Subject to Escrow: Management & Insiders Institutions Other Shareholders October 2020 Offering Institutions Other Shareholders Total Basic Shares	18.1 38.8 33.8 90.7 $0.70 5.3 0.95 2.6 0.95 98.6 $0.72
Dilutive Securities
Employee Options 2020 Grants 2021 Grants Warrants Broker Warrants October 2020 Offering October 2020 Offering - Broker Warrants Total Dilutive Securities Fully Diluted Shares Equity Valuation - basic shares (C$MM) Cash Balance Debt	10.0 $0.48 4.9 $0.85 1.6 $0.49 13.6 $0.72 1.6 $0.69 2.6 $1.30 0.6 $0.95 36.5 $0.70 135.1 $71.0 $2.6 None

• W.A. = weighted average

• Ownership % is based on basic common share count at listing after conversion of all debentures and preferred shares

• 75.6M of total basic common shares are subject to staged-release escrow agreements

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Mgmt. &
Insiders
Other
18%
Shareholders
37%
Institutions
45%
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